On 12 Nov 2024, the HKMA updated Authorized Institutions and Stored Value Facility Licensees on FATF's maintenance of Iran and DPRK on the 'High-Risk Jurisdictions subject to a Call for Action' list, requiring continued enhanced due diligence measures, and Myanmar's continued placement on the same list necessitating proportionate enhanced due diligence. The HKMA also announced that future FATF updates will be communicated via email and highlighted the FATF's public consultation on proposed revisions to Recommendation 1.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
Increased Transparency at Heart of Hong Kong Regulatory Changes
Hong Kong has continued to maintain its status as a leading financial centre throughout 2016 and into 2017, and there have been a number of regulatory developme
OTC Derivatives: Proposed Hong Kong Reporting & Record Keeping Requirements
Amendments in 2014 to the Securities and Futures Ordinance introduced a new statutory regime for OTC derivative transactions. The regime establishes a framework
SPOTLIGHT ON
FAMILY OFFICES
FATF Jurisdiction Updates
On 12 Nov 2024, the HKMA issued a circular updating Authorized Institutions and Stored Value Facility Licensees on the Financial Action Task Force (FATF) statements regarding strategic deficiencies in anti-money laundering and counter-terrorism financing regimes. The FATF has maintained Iran and the Democratic People’s Republic of Korea (DPRK) on its 'High-Risk Jurisdictions subject to a Call for Action' list, requiring Authorized Institutions and SVF licensees to continue applying enhanced due diligence measures as specified in the HKMA circular dated 11 March 2020. Myanmar remains on the 'Call for Action' list until completion of its action plan, necessitating continued application of proportionate enhanced due diligence measures to business relationships and transactions involving natural and legal persons from Myanmar, per paragraphs 4.15.1 of the May 2023 AML/CFT Guideline for Authorized Institutions and 4.13.1 of the May 2023 AML/CFT Guideline for Stored Value Facility Licensees.
FATF Plenary Outcomes and Communication Changes
The FATF Plenary meeting held 23–25 October 2024 resulted in an updated 'Jurisdictions under Increased Monitoring' statement, accessible via the FATF website. Additionally, the FATF launched a public consultation on proposed revisions to Recommendation 1 concerning risk assessment and the risk-based approach to support financial inclusion, with final revisions expected in 2025. The HKMA announced a revised communication approach, stating that future FATF-related updates will be disseminated via email to Authorized Institutions and SVF licensees to ensure more timely updates, replacing the prior circular-based notification method.
View the full article:Source
